SB 5357 — Authorizing cities and counties to impose additional taxes for affordable housing.

S-1431.3SUBSTITUTES-0583.1SENATE SENATE BILL 5357State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators HousingDarneille, StabilityKuderer, &Nguyen, AffordabilitySaldaña, (originallyand sponsoredHuntRead byfirst Senatorstime Darneille,01/18/19.Referred Kuderer,to Nguyen,Committee Saldaña,on andHousing Hunt)READStability FIRST& TIMEAffordability.AN 02/14/19.AN ACT Relating to authorizing cities and counties to impose additional taxes for affordable housing;

RCW 82.46.075 and 2002 c 343 s 1 are each amended to read as follows:(1) Subject to subsections (((4)(4) and (5)))(6)(5) and (7) of this section, the legislative authority of any county or city may impose an additional excise tax on the purchase and sale of real property in ((the county))its jurisdiction at the rate of one-half of one percent of the selling price.

((TheThe proceeds of the tax shall((shall))must be used exclusively for the development of affordable housing including acquisition, building, rehabilitation, and maintenance and operation of housing for very low, low, and moderate-income persons and those with special needs.))(2)needs.(2) Subject to subsection (8) of this section, the legislative authority of any city, or of any county that has not imposed the tax authorized in subsection (1) of this section, may impose an additional excise tax on the purchase and sale of real property in its jurisdiction at the rate of one-quarter of one percent of the selling price.(3) The proceeds of the taxes imposed under this section must be used exclusively for the development of affordable housing including acquisition, building, rehabilitation, and maintenance and operation of housing for very low, low, and moderate-income persons and those with special needs.(4) Revenues generated from the ((tax))taxestax imposed under this section ((shall))mustshall be placed in an affordable housing account administered by the ((county))authorizing jurisdiction.

The ((county))authorizing legislative authority ((shall))mustshall determine a mechanism for receiving grant and loan applications, and criteria by which the applications ((shall))mustshall be approved and funded.

Eligible recipients of grants and loans from the account ((shall))mustshall be private nonprofit, affordable housing providers, the housing authority for the county, or other housing programs conducted or funded by a public agency, or by a public agency in partnership with a private nonprofit entity.(((3)))(5)entity.(3) The taxes imposed under this section ((shall))must(((4)))(6)(a)shall Nobe taximposed mayin bethe imposedsame manner and on the same occurrences, and are subject to the same conditions, as the taxes under ((thischapter section))subsection82.45 (1)RCW, ofexcept thisthat sectionthe unlesstax approvedshall bybe athe majorityobligation of both the voterspurchaser ofand the countyseller, voting,as fordetermined aby specifiedthe period((county))authorizing andlegislative forauthority, awith specifiedat maximumleast rate.one-half of the obligation being that of the purchaser.

((This))AThe vote((county))jurisdiction mustmay followenforce either:(i)the Theobligation adoptionthrough an action of adebt resolutionagainst bythe purchaser or seller or may foreclose the countylien legislativeon authoritythe proposingproperty thisin action;the same manner prescribed for the foreclosure of mortgages.

or(ii) The filingimposition of a petition proposing this action with the countytax auditor,is signedeffective bythirty countydays votersafter at least equal in number to ten percent of the total number of voters in the county who voted in the preceding general election.(b) The ballot proposition ((shall))must be submitted to the voters of the county at the next general election occurring at leastwhich sixtythe daystax after a petition is filed,authorized.(4)(a) or((No at any special election prior to this general election called for this purpose by the county legislative authority.(((5)))(7) No tax maymay))The befull imposed under ((this section))subsection (1) of this section unless the county imposes a tax under RCW 82.46.070 at the maximum rate andof theone-half taxof wasone imposedpercent by January 1, 2003.(((6)))(8) No tax may not be imposed under subsection (2) of this section unless it is approved by a majority of the jurisdiction'svoters legislative((of authority.(9) A plan for the expenditure of the proceeds of the ((tax))taxes imposed by this section ((shall))must be prepared by the county authorizingvoting, legislativefor authoritya atspecified leastperiod sixtyand daysfor beforea thespecified electionmaximum orrate. enactment if the proposal is initiated by resolution of the county or city legislative authority, or within six months after the tax has been authorized by the voters if the proposal is initiated by petition.

PriorThis))in to ((the adoption of))a county adopting this plan, the electedjurisdiction officialsvoting. of cities located within the county ((shall))must be consulted and at least one public hearing ((shall))must be held to obtain public comment.

TheA proceedsmajority of the taxjurisdiction's ((shall))mustlegislative beauthority expendedmay inimpose conformance with this plan.(10) If both a citytax andrate countyless exercisethan the authorityfull providedamount inauthorized subsectionunder (2) of this section,section thewithout cityvoter mustapproval. collect the excise tax within its incorporated boundaries, and the county must collect the excise tax within the unincorporated areas.--- END ---

A vote must follow either:(i) The adoption of a resolution by the county or city legislative authority proposing this action;

or(ii) The filing of a petition proposing this action with the county auditor, signed by county or city voters at least equal in number to ten percent of the total number of voters in the county or city who voted in the preceding general election.(b) The ballot proposition shall be submitted to the voters of the county or city at the next general election occurring at least sixty days after a petition is filed, or at any special election prior to this general election called for this purpose by the county legislative authority.(5) ((No tax may be imposed under this section unless the county imposes a tax under RCW 82.46.070 at the maximum rate and the tax was imposed by January 1, 2003.(6))) A plan for the expenditure of the proceeds of the tax imposed by this section shall be prepared by the ((county))authorizing legislative authority at least sixty days before the election or enactment if the proposal is initiated by resolution of the county legislative authority, or within six months after the tax has been authorized by the voters if the proposal is initiated by petition.

Prior to ((the adoption of))a county adopting this plan, the elected officials of cities located within the county shall be consulted and at least one public hearing shall be held to obtain public comment.

The proceeds of the tax shall be expended in conformance with this plan.(6) If both a city and county exercise the authority provided in this section, the city must collect the excise tax within its incorporated boundaries, and the county must collect the excise tax within the unincorporated areas.--- END ---